Diamonds and Dogs

12/6/17

DaVita Medical (DVA) making smart moves. DaVita Inc. will sell its underperforming managed-care group to Optum in a $4.9 billion deal that will allow the Denver-based kidney-care provider to reinvest in its core businesses and pursue new investments in other areas of health care. DaVita's managed-care unit generated 30% of their sales, did was not making money and purchase price was over 50% of the DaVita's market cap. DaVita will use the $4.9 billion to reinvest in its core businesses and pursue new investments in other areas of health care.

Profit-taking in Home Depot (HD). The largest home improvement store chain is down a percent after reaffirming 2018 earnings. I guess investors were expected a bump to earnings estimates. The stock is not cheap trading for 24 times next years' earnings, but Home Depot did announced a $15 billion share buyback on Wednesday and targeted annual sales of up to $120 billion over the course of the next three years as it accelerates investment in stores, employees and deliveries.